EBA to oversee USDC reserves from November 12, 2026 — Cyprus Mail
In the EU, the European Banking Authority (EBA) will assume direct supervision of the key financial safeguards of the US dollar-pegged stablecoin USDC from November 12, 2026. The EBA has recognized USDC as the first significant electronic money token in the European Union under the Markets in Crypto-Assets (MiCA) regulation, Cyprus Mail reports.
USDC in the EU is issued by Circle Internet Financial Europe SAS, while in the United States it is issued by Circle Internet Financial, LLC. The stablecoin is designed to maintain a stable value relative to another asset — in this case, the US dollar. Such crypto-assets are used to transfer value, trade crypto-assets, and make settlements in digital markets.
Division of supervision
From November 12, the EBA will directly oversee the issuer's own funds, reserve assets, liquidity requirements, as well as recovery and token redemption plans. These areas concern the issuer's financial resources, asset and liability management, and its ability to meet obligations to token holders in the event of difficulties.
The French banking and insurance supervisory authority ACPR will retain powers over corporate governance, qualifying holdings, assessments of professional suitability, outsourcing, and conflicts of interest. The EBA and ACPR will cooperate on the transition to the new model and effective supervision.
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The decision does not mean USDC will be withdrawn from circulation and does not change the token's stated purpose. It redistributes supervisory functions concerning financial risks associated with the stablecoin.
Significant token status
In the EU, 45 electronic money tokens have been notified under MiCA, but USDC became the first to be classified as significant. This status entails additional supervision given the token's potential scale and importance for the financial system.
MiCA gives the EBA the authority to assess annually whether tokens meet the criteria for significance. Significant electronic money tokens are subject to dual supervision by the EBA and the national competent authority. To cooperate on the cross-border operations of stablecoins, the EBA has also concluded a memorandum of understanding with the New York State Department of Financial Services.
